halifax childrens regular saver @ 9+%

donsaini

dont know if this is true or not, so plaease dont shoot the messenger.

i just went down to the local branch of halifax, looking into childrens accounts.

when i enquired if kids could open a regular saver acount and earn 7%. i was told no, BUT apparently next week halifax is unveiling a new account,

same rules as present reg saver of £25-250 / month at between 9-10%
at end of year, swept into save-4-it account @ approx 5%
must be trustee held account
automatically rolls over each year.

seems too good to be true, but anyone else heard anything yet?
:beer:

jo_b_2

No, but am considering opening a Save 4 It account for my son, after the A+L interest rate cut. Will hang fire and see if anything amounts to this new account.

debtbuster2K5

Hi donsaini,

I have just been on the phone to Halifax, opening a regular saver account, and the advisor basically confirmed all that you have said in your post, as I was enquring about opening the Save 4 It account that we have for our 3 Year old for our Newborn.

The only thing she did not elaborate on was the interest rate, but said it would be "Headline Stuff".

Oh, the only difference she said was regarding how much you can deposit, which is more likely to be £10-£100 per month.

So watch the Halifax site on Monday

HTH

moomintroll_3

The rate is double-digit, watch the website next week.

Moncs_2

This sound's to good to be true... Possibly something like 9% for the first 'X' months then back down to a regular 4.5% but you never know

lipidicman

If it was £250pm (ie 1625 average balance) at 10% you would get £160 ish interest. ie over the allowance of £100. So this would be taxed as parents income. Be careful out there!

MSE_Martin

As a journalist obviously there are some things you need to obey an embargo on that you know about so if i did know about this i wouldnt be able to comment on it anyway. However something tells me by tomorrow there'll be a lot more info around

cloud_dog

lipidicman wrote:

If it was £250pm (ie 1625 average balance) at 10% you would get £160 ish interest. ie over the allowance of £100. So this would be taxed as parents income. Be careful out there!

Lipid, only if the deposited money *is* actually from the parents. If monies originate from other sources, grandparents, friends, etc then the rule does not apply.

cloud_dog

ReportInvestor

It is 10% !

"Halifax Bank Of Scotland will pay 10%, the highest among British banks, to adults who make regular deposits into a savings account in the name of a child, said Shane O'Riordain, a spokesman for the Edinburgh-based lender. That beats the 8 percent rate that HSBC Holdings Plc, Europe's biggest bank by market value, offers to regular savers........

The HBOS account, which will be introduced on June 13, requires customers make a monthly deposit of between 10 pounds and 100 pounds for a year. At the end of the 12 months the account is moved and the cash is moved to a regular savings account, which currently pays 5.05 percent interest."

Kazza242

I found some info on it from the 'myfinances' website. Click Here.

lipidicman

cloud_dog wrote:

Lipid, only if the deposited money *is* actually from the parents. If monies originate from other sources, grandparents, friends, etc then the rule does not apply.

cloud_dog

Yes that is correct. The rule is to stop parents putting all of their savings into their child's name as a tax dodge. I guess you cant gift money to a grandparent then have them deposit it, as that would make a mockery of the rules.